All Forum Posts by: Obed Calixte

There are a few options

(1)You can get connected with the larger wholesaler firms in the area (2) go through PCPAO site and skiptrace the buyers of similar properties as yours, (3) hunt down the agents involved in the sale of properties similar to yours or go to local REI meetings and pitch it to the investors there.

Solely on price, there are areas that can be fits

Tampa: south of Gandy - South Tampa, Suphur Springs, near University, 

St Pete: Childs Park & surrounding areas, Gulfport, South St Pete, Euclid Heights and areas west of 275

Largo 

You only provided price, which is a small part of buy box. I recommend spending time (if you havent already) considering the type of property, rehab required, exit strategy and level of involvement in management  - amongst other factors.

What is your buy box?  

Respect! 

I'm not familiar with Cincy but it sounds like you have a good foundation in place. I'm sure you'll find strong connections on/through this forum.

It's a range and depends on the property type, location, end condition and rental strategy. 

For quick math I have a range of each between: 700/yr to 3% of gross income

For C to B

-Larger developments announced nearby

-Increased activity in new construction

-Building of commercial retail in or near the neighborhood.  (Starbucks / yoga studio / craft brewery /boutique cookie,coffe or ice cream shop  are the easiest targets)

-Activation of dormant retail sites

-Increased foot traffic 

For B to A
Above also apply

-Home valuations (are homes in the increasing at rates above nearby or similar neighborhoods)

-Is it walkable or are projects in place to make it highly walkable for residents

-Is it near highly desirable activity centers 

-is it unique (for example - Can it get historic designation)

This is interesting. You will want to consult with a lawyer.

In regards to your last two questions here's some background on what makes a contract valid and enforceable:

Offer: A promise to do or not do something within a certain time period 

Acceptance: A clear and direct statement that all terms and responsibilities are accepted

Consideration: A legal and adequate inducement given in exchange for the promise

Capacity: The parties to the contract must have the legal capacity and competency to contract

Awareness: A party must be aware of the contract

Legality: The contract must be legal in the jurisdiction it will be operating in

***Not legal advice*** Steps I would take: 

-Review contract in detail to understand each counterparties responsibilities (if you are not aware)

- Email a copy of the lease to each of the tenants listed on the lease and reiterate lease expectations for termination notice, rent payment etc. 

- If the lease was signed via Docusign (other esign may have same ability) - you can go to the envelope, go to history and view the IP addresses for each action taken. If the IP addresses are the same for each signee, then there is a chance that the same person signed. If the IP addresses are different then it is likely that it was signed by separate individuals. This is not solid proof in either direction, however it will give additional context when discussing with the lawyer. 

Separately from all of that - I recommend reviewing your lease up procedures to improve verification of signing tenants and their agreement and aware of terms and conditions. 

The 50% rule - in my opinion- is used solely as a quick back of napkin calculation to determine if it is worthwhile to do more investigating of a property. 

Though DSCR gives you a better picture of how the property is projected to perform vs debt service, you can't rely solely on one measure to make a purchase decision.

With the numbers you provided above, you will have to ensure you have healthy reserves. Though at 1525/mth it is projected to cashflow a little less than 100/mth  -- the numbers do not include what I like to call reality numbers (vacancy loss, maintenance, capex reserves). Just one month of vacancy a year takes away any cashflow you would have. 

I would be beneficial to determine if they are other aspects of the property that make it a worthwhile investment (tax, appreciation etc).  This goes back to the aspect that you can't rely solely on one metric. 

There's no step by step guide but there are key things : 

Learn: RE strategies, what interests you, what do people in your area need.

Connect: find a mentor, accountability group and be around those doing what you want to do.

Help: solve problems- do people need dealflow, property mgmt, construction expertise, etc.  Identify the need that you can deliver on.

Grow: you, your income and opportunities will increase as you continue to do the above.

Biggerpocket podcast is a good launch point. Brandon Turner does a great job going over different strategies in his book "Invest in Real Estate with No (or little) Money Down". There are plenty other resources but the first is to educate

There are mortgage recast calculators online or you can reach out to your lender.

P+I payment will go from 2155 to ~1800 given the numbers you provided.